Croatia's GDP falls by real 1.9% y/y in Q3

The data is in line with a flash estimate issued at the end of November.

In the second quarter, Croatia's GDP fell by a real 2.2% year-on-year.

"[..] as expected, domestic demand and investments were dominant negative drivers, while net exports maintained supportive role to headline figure. We see additional slowdown in 4Q, expecting FY12 GDP contraction close to 2.0% mark," Erste Group Research said in a short note.

The Erste analysts expect that the last quarter should bring some additional deterioration, as the ongoing consumption weakness and lack of public sector investment indicate no rebound on the domestic demand side.